United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann reported that the USD/CHF currency pair broke higher to reach 0.8147 during the New York session, surpassing previous expectations for the trading range between 0.8075 and 0.8115 [1]. Despite the pair being described as overbought, UOB analysts believe there is still constructive momentum, with scope for the USD/CHF to test the 0.8155 level intraday before potentially leveling off [1].
On a one-to-three-week outlook, UOB notes that a clear break and close above 0.8155 could extend gains toward 0.8175, while support is identified at 0.8085 [1]. The strategists emphasize that the odds of further upward movement will remain as long as the USD/CHF holds above the strong support level of 0.8085 [1].
UOB's analysis suggests that while a sustained rise above 0.8155 appears unlikely in the short term, upward momentum is starting to build. If the USD/CHF consolidates above 0.8155, further gains toward 0.8175 are possible, but a breach of 0.8105 would likely lead to consolidation rather than further upward movement [1].
CONCLUSION
USD/CHF has demonstrated unexpected strength, reaching 0.8147 and approaching key resistance at 0.8155. UOB analysts see potential for further gains if the pair sustains above this level, but caution that consolidation is likely if support at 0.8105 is breached. Market participants should monitor these technical levels for signs of continued momentum or a pause in the uptrend.